MicroStrategy’s Strategic Acquisitions Continue
In a move that underscores its commitment to cryptocurrency, MicroStrategy has bolstered its Bitcoin portfolio with an additional 850 BTC acquired for $37.2 million this past January. This purchase has significantly increased the company’s holdings to a staggering 190,000 BTC, an asset now valued at over $8.1 billion.
Details of the Purchase
Michael Saylor, the visionary behind MicroStrategy, announced the acquisition on February 7. The company revealed that the total investment in Bitcoin now stands at $5.93 billion, which averages out to $31,224 per Bitcoin. This strategic move comes despite a slight dip in the company’s year-over-year revenues.
Revenue Streams and Strategic Outlook
MicroStrategy has seen a shift in its revenue streams, with a noticeable 23% increase in subscription services revenue, amounting to $21.5 million, even as total revenues fell by 6% to $124.5 million. CEO Phong Le has hailed 2023 as an “extraordinary year,” attributing success to the company’s strategic capital raising and Bitcoin-centric business model. CFO Andrew Kang underscored the benefits reaped from the Q4 Bitcoin price surge and strategic capital markets activities.
MicroStrategy’s Bitcoin Journey
Since the beginning of its Bitcoin journey in 2020, during the onset of the global pandemic, MicroStrategy has consistently focused on expanding its Bitcoin holdings. December 2023 saw another notable purchase of 14,620 BTC at an average price of $42,110 per coin, amounting to over $615 million. This move, as per Michael Saylor, is a hedge against the looming threat of inflation.
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